- First REIT's DPU of 0.58/1.78 Singapore cents for 3Q24/9M24 (-6.5%/-4.3% y-o-y) was in line with our estimates, forming 25%/75% of our FY24e forecast.
- 3Q24 DPU was 3.3% lower than the two preceding quarters of 0.60 cents per quarter. The drop in DPU was due to the depreciation of the IDR and JPY against the S$.
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- Maintain BUY with an unchanged DDM-derived First REIT's target price of S$0.30. First REIT's share price is trading at an attractive forward FY24e distribution yield of 8.9%.
The Positives
Rental growth in local currency terms remained stable y-o-y.
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- The proportion of rental income from Siloam is expected to continue increasing, ultimately surpassing 80% after October 2026, provided that performance-based rent is achieved for all Indonesian hospitals.
Stable capital management.
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